TAX TAKE: A Roller Coaster Week Ahead
This week looks hectic as House GOP leaders and the Biden administration stare down each other over funding the government. But before we get to the Saturday shutdown deadline and what it means for taxes, let's take stock of some good news.
First, House Ways and Means Committee Chairman Jason Smith (R-MO) struck an optimistic tone last week on the prospects for legislation that would extend a number of lapsed business tax provisions. This bill needs bipartisan support to clear the Senate and the price to get Democrats on board is an expansion of the child tax credit (CTC).
"[The CTC] is something that I've always supported," Chairman Smith said last week. "It's extremely important to working class Americans, so I think there's common ground," adding, "I think we can get to a final product." He also cited several positive discussions with Senate Finance Committee Chairman Ron Wyden (D-OR), who holds the keys to passing any bipartisan tax bill in the Senate.
This week, Chairman Wyden is focusing on a Thursday hearing on the nomination of Marjorie Rollinson to become IRS Chief Counsel. She will undoubtedly face some tough questions about the IRS's decision to stop processing the deluge of questionable Employee Retention Credit claims. Rollinson may also be asked about the recent agency-wide enforcement shift and its nascent plan to launch a new Large Business & International Division (LB&I) audit arm focused on passthrough entities. If all goes well, a committee vote on her nomination could come next month.
Back to the looming shutdown. Absent a continuing resolution being signed into law before the end of the day on Saturday, much of the non-essential government workforce will be idled. What's not immediately clear is how the IRS will operate during a potential funding lapse. Conflicting reports last week first indicated that the agency would be fully operational, kept afloat by tapping funding resources from the Inflation Reduction Act. However, reports to the contrary from the National Treasury Employees Union surfaced about IRS contingency plans and the likelihood of staff furloughs during a shutdown. Seems like the roller coaster is just getting started. #TaxTake
Upcoming Speaking Engagements and Events
On October 30, Loren will speak at the IBA Annual Conference on a panel titled, "How Do the OECD and the U.N. Address International Tax Issues (Past, Present, and Future)?"
Also on October 30, Marc will present a tax legislative outlook at the 58th Annual Southern Federal Tax Institute.
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